Part 1Tenancy reform

Chapter 1Assured tenancies

Rent and other terms

7Challenging amount or increase of rent

(1)

Section 14 of the 1988 Act (determination of rent by tribunal) is amended in accordance with subsections (2) to (9).

(2)

In the title, after “of” insert “open-market”.

(3)

Before subsection (1) insert—

“A1

A tenant under an assured tenancy other than a relevant low-cost tenancy may make an application to the appropriate tribunal for the purpose of challenging the rent payable under the tenancy.

A2

No application may be made under subsection (A1) if—

(a)

the rent payable under the tenancy is pursuant to a previous determination under this section, or

(b)

more than six months have elapsed since the beginning of the tenancy.

A3

A tenant under any assured tenancy may make an application to the appropriate tribunal for the purpose of challenging a new rent proposed in a notice under section 13(2) or 13A(2).”

(4)

(a)

for the words from the beginning to “that section,” substitute “Where an application is made under subsection (A1) or (A3),”;

(b)

for paragraphs (a) and (b) substitute—

“(a)

which has the same periods as those of the tenancy to which the application relates;

(b)

which begins—

(i)

in the case of an application under subsection (A1), on the date of the application;

(ii)

in the case of an application under subsection (A3), at the beginning of the new period specified in the notice; and”;

(c)

in paragraph (c) for “notice” substitute “application”;

(d)

omit paragraph (d) and the “and” before it.

(5)

(a)

in the words before paragraph (a)

(i)

omit the words from “in relation to” to “above,”;

(ii)

for “notice”, in the second place it occurs, substitute “application”;

(b)

in paragraphs (a) and (b) for “service of the notice” substitute “the application”.

(6)

(a)

in the words before paragraph (a), for the words from “on” to “served,” substitute “of the application”;

(b)

in paragraph (a), for “that notice was served” substitute “the application was made”.

(7)

(8)

In subsection (8) omit “of a rent for a dwelling-house”.

(9)

(10)

After section 14 of the 1988 Act insert—

“14ZAEffect of determination: rent payable

(1)

This section applies where the appropriate tribunal makes a determination on an application under section 14(A1) in relation to a tenancy.

(2)

The rent payable under the tenancy following the determination is—

(a)

the new rent amount, and

(b)

the appropriate amount (if any) in respect of rates.

(3)

The rent payable under the tenancy following the determination takes effect from the date that the appropriate tribunal directs.

(4)

The new rent amount is—

(a)

the open-market rent, if lower than the tenancy rent, and

(b)

otherwise, the tenancy rent.

(5)

The date must not be earlier than the date of the application.

(6)

In this section—

the appropriate amount in respect of rates” means the amount of rent attributable to any rates borne as mentioned in section 14(5);

the open-market rent” means the amount of rent determined by the appropriate tribunal on the application, in accordance with section 14(1);

the tenancy rent” means the rent payable under the tenancy immediately before the determination is made, excluding the appropriate amount in respect of rates (if any).

14ZBEffect of determination: proposed new rent

(1)

This section applies where the appropriate tribunal makes a determination on an application under section 14(A3) in relation to a tenancy.

(2)

The rent payable under the tenancy following the determination is—

(a)

the new rent amount, and

(b)

the appropriate amount (if any) in respect of rates.

(3)

The rent payable under the tenancy following the determination takes effect from—

(a)

the beginning of the new period specified in the notice under section 13(2) or 13A(2), if that date is on or after the date of the determination,

(b)

the beginning of the first new period of the tenancy which begins on or after the date of the determination, if the beginning of the new period specified in the notice under section 13(2) or 13A(2) is before the date of the determination, or

(c)

if it appears to the tribunal that applying paragraph (a) or (b) would cause undue hardship to the tenant, a date that the appropriate tribunal directs.

(4)

A date specified under subsection (3)(c) must fall before the end of the period of two months beginning with the date of the determination.

(5)

The new rent amount is—

(a)

the open-market rent, if lower than the proposed rent, and

(b)

otherwise, the proposed rent.

(6)

The Secretary of State may by regulations make provision so as to substitute, in relation to relevant tenancies, a different date as the effective date.

(7)

The effective date may not be earlier than the beginning of the new period specified in the notice served on the tenant under section 13(2) or 13A(2).

(8)

Regulations under subsection (6)

(a)

may amend this section;

(b)

may make different provision for different purposes;

(c)

may make supplemental, consequential, incidental, transitional, transitory or saving provision;

(d)

are to be made by statutory instrument.

(9)

A statutory instrument containing regulations under subsection (6) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(10)

In this section—

the appropriate amount in respect of rates” has the meaning given by section 14ZA(6);

the effective date” means a date for the time being specified in subsection (3)(b) as the date from which the rent payable takes effect;

the open-market rent” has the meaning given by section 14ZA(6);

the proposed rent” means the amount of rent specified in the notice under section 13(2) or 13A(2), excluding the appropriate amount in respect of rates (if any);

relevant tenancies” means tenancies in relation to which an application under section 14(A3) is made on or after the date on which the regulations under subsection (6) come into force.”

(11)